Westlake Chemical Corporation (WLK)

Financial leverage ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	21,035,000	21,396,000	20,981,000	20,806,000	20,550,000	20,425,000	20,372,000	19,741,000	18,459,000	17,108,000	14,719,000	14,050,000	13,835,000	13,694,000	13,555,000	14,163,000	13,261,000	13,107,000	12,216,000	12,104,000
Total stockholders’ equity	US$ in thousands	10,241,000	10,754,000	10,544,000	10,291,000	9,931,000	9,621,000	9,404,000	8,681,000	7,955,000	7,298,000	6,771,000	6,261,000	6,043,000	5,949,000	5,901,000	5,893,000	5,860,000	5,824,000	5,719,000	5,632,000
Financial leverage ratio		2.05	1.99	1.99	2.02	2.07	2.12	2.17	2.27	2.32	2.34	2.17	2.24	2.29	2.30	2.30	2.40	2.26	2.25	2.14	2.15

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $21,035,000K ÷ $10,241,000K
= 2.05

The financial leverage ratio for Westlake Corporation has been relatively stable over the past eight quarters, ranging from 1.99 to 2.27. The ratio indicates that the company relies on a moderate level of debt to finance its operations and assets, with a higher ratio suggesting higher financial leverage.

Despite some fluctuations, the trend shows a slight decrease in the financial leverage ratio over the recent quarters, indicating a potential decrease in the company's reliance on debt financing. This could be interpreted as a positive signal, as lower financial leverage can reduce financial risk and increase financial stability.

However, it is important to note that a financial leverage ratio of around 2 suggests a balanced mix of debt and equity in the company's capital structure. Investors and stakeholders should monitor the ratio over time to assess any significant changes in the company's debt levels and financial risk profile.